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Thread summary:

Michigan cut spending, state’s Medicare system, revenue sharing with local governments, correct massive deficits, high paid politicians, prevailing wage, public jobs re-bid

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Old 10-16-2007, 09:49 AM
 
Location: Grand Rapids Metro
8,882 posts, read 19,860,382 times
Reputation: 3920

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I now believe, after doing some reading and research, that the new service tax institution and income tax increases are the completely wrong way to go for Michigan. Does anyone have any ideas where Michigan can cut $750 Million - $1 Billion in spending to make up for it? That's about 2% of the $45 Billion budget. I've read that our welfare system here in Michigan is overbloated, as well as the state's medicare system (?). Pay cuts for legislators and the governor would be mostly symbolic gestures, but still a move in the right direction.

Other states like Minnesota and New York have had to correct massive deficits in the past five years (NY's was $3 Billion compared to our $1.5 Billion) It can be done.

Anyone have some ideas? Revenue sharing with local governments is killing important services like fire, police and recreation, so where is the money going to come from? Anyone read any interesting pieces on proposed cuts?

A serious discussion on this would be appreciated.
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Old 10-16-2007, 12:31 PM
 
Location: West Michigan
65 posts, read 233,968 times
Reputation: 31
Quote:
Originally Posted by magellan View Post
I now believe, after doing some reading and research, that the new service tax institution and income tax increases are the completely wrong way to go for Michigan. Does anyone have any ideas where Michigan can cut $750 Million - $1 Billion in spending to make up for it? That's about 2% of the $45 Billion budget. I've read that our welfare system here in Michigan is overbloated, as well as the state's medicare system (?). Pay cuts for legislators and the governor would be mostly symbolic gestures, but still a move in the right direction.

Other states like Minnesota and New York have had to correct massive deficits in the past five years (NY's was $3 Billion compared to our $1.5 Billion) It can be done.

Anyone have some ideas? Revenue sharing with local governments is killing important services like fire, police and recreation, so where is the money going to come from? Anyone read any interesting pieces on proposed cuts?

A serious discussion on this would be appreciated.
For starters, our politicians pay could be cut down to almost nothing. Michigan 4th on the list for highest paid politicians. From us to number 5 is a $50,000 gap. The majority of states in the Union pay under $10,000 and a handful do not pay anything.

Also, cutting the funding for programs that there is no name for except for "retarded". Remember Granholms "Cool City's" funding. Give $100,000 to 20 city's across Michigan that are "cool" so they can use it for more things to make them "cool". This right here shows how she does not use her head.
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Old 10-16-2007, 12:34 PM
 
Location: East Grand Rapids, MI
845 posts, read 3,272,621 times
Reputation: 241
Joe,
That's still a symbolid gesture. If we need to cut $1B from the budget (a nice round number) cutting their pay makes no difference.

I agree, it's the right thing to do (cut them to 25th in the nation...right in the middle).

How do we save real money?
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Old 10-16-2007, 02:04 PM
 
112 posts, read 348,500 times
Reputation: 28
End the "Prevailing Wage". A lot of other states have done this. I don't know how much it would save but I know a LOT of people who have profited from it.

If you're willing to do a job for joe blow at $15/hr or so, you should be willing to do the same work for uncle sam for the same pay.
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Old 10-16-2007, 02:49 PM
 
136 posts, read 482,314 times
Reputation: 50
Re-bid all public jobs. If someone equally qualified is willing to work significantly cheaper then they should get the job.

Eliminate public retirement benefits altogether. Put them in Social Security like the rest of us. That goes for Washington too. I can't understand why anyone ever thought we needed a special retirement program for public employees.
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Old 10-17-2007, 04:07 AM
 
Location: SE Michigan
262 posts, read 788,374 times
Reputation: 90
I see that we are looking at saving money but the thing is we need to MAKE money, if we had lower TAXES this would bring companies in and they would invest in Michigan, but as long as the people in Lansing keep TAXES HIGH we will not see a Business come here and set up. Also I got an email from the Governors Office the other day telling me how the Governor was working to balance the States budget, She said she took a pay cut along with the memebers of the State House. Here's the Funny part the cut was 5% and so I looked at the State Reps make 91k so they take a pay cut of $4,500 Big Freaking Deal. How about the people who lost their jobs that paid them 25k to 45k a year. so I told the Governor if she wants to show the people of Michigan she feels OUR pains she should take a pay cut of 50% of what she makes and the State Reps need to do the same, I mean who couldn't live on $45,500 a year I know most of us working can do it, So why is it they can't? The other thing is all the BENEFITS they get, Like the Governor flying all around the World looking for Businesses to come to Michigan when she dropped the Ball on Companies like Toyota, Honda, VW. Just like her deal with Pfizer not should I spelt that right, But she gave them promises and then when they finished setting up shop she turned around and hit them with HIGHER TAXES. So they said Bye Bye, and cut 7,000 jobs closed down their operations. This is what kills our economy, If your the Governor shouldn't you make a deal and stick to it, not go back on you WORD. This is like all her PLANS that have not come to the for front to this day. Now as for Welfare Reform Maybe the people in Lansing shouldn't of changed the Reforms that Engler had put in place to turn Welfare around and getting people to work instead of sitting around collecting checks, But since there are few jobs out there what are people to do. go on Welfare or move out of the State to find work in other States. So now I say Lower TAXES to create a place that a Business will say well I could make a go of it in Michigan, but as long as the people in Lansing feel they should TAX the living crap out of everyone to Balance their Mistakes and Over Spending it's going to be the same ole same ole. I just don't see why these people in Lansing don't understand that We the People have had to take pay cuts and cut back on OUR spending why is it so hard for them to do the same thing? I mean they could take all their paid Holidays and paid sick days and give that money back or they could cut the Pensions of the Memebers of Government who have left Office, Most of these people are rich anyways the can pay for their own retirement, Why should they residents pay for these people who days in the lime light are over, Let them give the money back. But we all know this would go over with them like a lead balloon. I would say to every person in Michigan we should all go to work for the State we would all have the best of the best BENEFITS and PAY.
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Old 10-17-2007, 06:13 AM
 
Location: West Michigan
65 posts, read 233,968 times
Reputation: 31
Quote:
Originally Posted by TaxBait View Post
Re-bid all public jobs. If someone equally qualified is willing to work significantly cheaper then they should get the job.

Eliminate public retirement benefits altogether. Put them in Social Security like the rest of us. That goes for Washington too. I can't understand why anyone ever thought we needed a special retirement program for public employees.
I agree with this. Although your getting into the whole union idea... which I will never understand why government jobs are protected by a union. How can you force the governments hand on pay, and job security when your paying them with funds that are bank rolled by a fluctuating taxing system?

The government does not know how much money their taxes bring in year to year, they may fall short on year... but the unions protecting some of these government jobs forces the government to pay anyway. So what does the government do if the union forces their hand to raise wages or benefits of these employees? Raise taxes on you and me!

Even my local city government gets huge raises and bonuses. But yet our tax dollars continue to go up on my property. How about giving some of that back to the tax payers?
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Old 10-17-2007, 06:19 AM
 
Location: West Michigan
65 posts, read 233,968 times
Reputation: 31
Quote:
Originally Posted by Frankawitz View Post
I see that we are looking at saving money but the thing is we need to MAKE money, if we had lower TAXES this would bring companies in and they would invest in Michigan, but as long as the people in Lansing keep TAXES HIGH we will not see a Business come here and set up. Also I got an email from the Governors Office the other day telling me how the Governor was working to balance the States budget, She said she took a pay cut along with the memebers of the State House. Here's the Funny part the cut was 5% and so I looked at the State Reps make 91k so they take a pay cut of $4,500 Big Freaking Deal. How about the people who lost their jobs that paid them 25k to 45k a year. so I told the Governor if she wants to show the people of Michigan she feels OUR pains she should take a pay cut of 50% of what she makes and the State Reps need to do the same, I mean who couldn't live on $45,500 a year I know most of us working can do it, So why is it they can't? The other thing is all the BENEFITS they get, Like the Governor flying all around the World looking for Businesses to come to Michigan when she dropped the Ball on Companies like Toyota, Honda, VW. Just like her deal with Pfizer not should I spelt that right, But she gave them promises and then when they finished setting up shop she turned around and hit them with HIGHER TAXES. So they said Bye Bye, and cut 7,000 jobs closed down their operations. This is what kills our economy, If your the Governor shouldn't you make a deal and stick to it, not go back on you WORD. This is like all her PLANS that have not come to the for front to this day. Now as for Welfare Reform Maybe the people in Lansing shouldn't of changed the Reforms that Engler had put in place to turn Welfare around and getting people to work instead of sitting around collecting checks, But since there are few jobs out there what are people to do. go on Welfare or move out of the State to find work in other States. So now I say Lower TAXES to create a place that a Business will say well I could make a go of it in Michigan, but as long as the people in Lansing feel they should TAX the living crap out of everyone to Balance their Mistakes and Over Spending it's going to be the same ole same ole. I just don't see why these people in Lansing don't understand that We the People have had to take pay cuts and cut back on OUR spending why is it so hard for them to do the same thing? I mean they could take all their paid Holidays and paid sick days and give that money back or they could cut the Pensions of the Memebers of Government who have left Office, Most of these people are rich anyways the can pay for their own retirement, Why should they residents pay for these people who days in the lime light are over, Let them give the money back. But we all know this would go over with them like a lead balloon. I would say to every person in Michigan we should all go to work for the State we would all have the best of the best BENEFITS and PAY.
Great post, and 100% accurate!

As I have said many times before, Lansing and the democrats need to stop holding the hands of the auto companies, and start catering to the small and medium sized business' in this state. The auto companies are the least effected by all these new taxes, and the small and medium sized business and their owners are the most effected. That is backwards.

The auto industry has their hands tied by the unions, and that is the bed they made. They need to stop whining to the government to help them be more competitive. This is what happens when free enterprise is taken over by unions and the government. If you think that is wrong, then you need to look at what makes Toyota the number two auto maker in the world, closing in on #1 GM.

My father is a small business owner, and he told me these new taxes will personally take another $30,000 a year out of him and each of his two partners. Add up all the other small business owners in the state, and you will come up with Billions of dollars that is not going back into the economy from these business owners such as my father. Econ 101 tells you that starving an economy like that only hurts it. How much more hurting can our economy take?
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Old 10-17-2007, 07:04 AM
 
Location: Grand Rapids Metro
8,882 posts, read 19,860,382 times
Reputation: 3920
Quote:
Originally Posted by Frankawitz View Post
I see that we are looking at saving money but the thing is we need to MAKE money, if we had lower TAXES this would bring companies in and they would invest in Michigan, but as long as the people in Lansing keep TAXES HIGH we will not see a Business come here and set up. Also I got an email from the Governors Office the other day telling me how the Governor was working to balance the States budget, She said she took a pay cut along with the memebers of the State House. Here's the Funny part the cut was 5% and so I looked at the State Reps make 91k so they take a pay cut of $4,500 Big Freaking Deal. How about the people who lost their jobs that paid them 25k to 45k a year. so I told the Governor if she wants to show the people of Michigan she feels OUR pains she should take a pay cut of 50% of what she makes and the State Reps need to do the same, I mean who couldn't live on $45,500 a year I know most of us working can do it, So why is it they can't? The other thing is all the BENEFITS they get, Like the Governor flying all around the World looking for Businesses to come to Michigan when she dropped the Ball on Companies like Toyota, Honda, VW. Just like her deal with Pfizer not should I spelt that right, But she gave them promises and then when they finished setting up shop she turned around and hit them with HIGHER TAXES. So they said Bye Bye, and cut 7,000 jobs closed down their operations. This is what kills our economy, If your the Governor shouldn't you make a deal and stick to it, not go back on you WORD. This is like all her PLANS that have not come to the for front to this day. Now as for Welfare Reform Maybe the people in Lansing shouldn't of changed the Reforms that Engler had put in place to turn Welfare around and getting people to work instead of sitting around collecting checks, But since there are few jobs out there what are people to do. go on Welfare or move out of the State to find work in other States. So now I say Lower TAXES to create a place that a Business will say well I could make a go of it in Michigan, but as long as the people in Lansing feel they should TAX the living crap out of everyone to Balance their Mistakes and Over Spending it's going to be the same ole same ole. I just don't see why these people in Lansing don't understand that We the People have had to take pay cuts and cut back on OUR spending why is it so hard for them to do the same thing? I mean they could take all their paid Holidays and paid sick days and give that money back or they could cut the Pensions of the Memebers of Government who have left Office, Most of these people are rich anyways the can pay for their own retirement, Why should they residents pay for these people who days in the lime light are over, Let them give the money back. But we all know this would go over with them like a lead balloon. I would say to every person in Michigan we should all go to work for the State we would all have the best of the best BENEFITS and PAY.
I agree that lower taxes create a better business environment which will hopefully raise revenue.

However, the problem with your theory is that the budget needs to be balanced. If taxes are cut, it MAY bring in more businesses and more revenue eventually, but then the budget is at a deficit, which unlike the Federal Government, the State of Michigan is constitutionally NOT allowed to run a deficit. It has to be balanced. It might take 5 years or more of enough new companies to get the revenue side up using that strategy. Lower taxes (or keeping taxes where they are) requires cuts in spending.

Cuts in salary would only account for a few Million dollars of $1 Billion in cuts needed. Again, not saying it's not needed, but it's chump change.

If Michigan is so out of control with spending, I would have expected an entire laundry list of areas to cut spending by now.
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Old 10-17-2007, 07:27 AM
 
24 posts, read 103,510 times
Reputation: 26
I own a business that is regulated by the Mich Dept of Agriculture. You should see the office complex in Lansing it looks like the pentagon. I think we the tax payers of Michigan pay for 900 employees just in that bureaucracy alone. They regulate us with a iron fist, regulations and fines. They need to fine us to justify there jobs to the legislators in Lansing. A don't know why you can't eliminate one single state job anyway.
Instead of working with us they fight us every step of the way. Thats Michigan's problem in a nut shell.State government is hostel to business in this state. So Ill pack up a go to were business is welcomed.
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